There are also disadvantages to holding companies, including the possibility of multiple taxation and the danger that the high rate of leverage will amplify the earnings fluctuations (be they losses or gains) of the operating companies.
Conceptually, we are starting now at the margin with a higher savings rate, less leverage and reduced expectations.
Following previous studies, we include the natural logarithm of firm size (SIZE), the operating-revenue growth rate (GROW), leverage (LEV), inventory as a percentage of total assets (INV), and profitability (ROE) as control variables in our regressions.
If short-term interest rates are lower than long-term rates, this leverage gooses the fund's yield.
The real lesson here is that extended periods of low interest rates (including periods of negative real interest rates) encourage leverage and asset speculation, and this time it was housing.
Late last year, it issued its first bonds, raising 900 million Singapore dollars, largely to establish a credit rating and leverage its huge cash position.
That combination—higher rates, lower leverage, and evidence that high prices reflect supply constraints more than speculative demand means that the central bank has little reason to make homeowners' lives any harder.
Some asset managers have gotten comfortable in the environment of lower interest rates, increased leverage, weaker loan covenants and rising asset prices.
It is the first empirical analysis of the relationship between firm-specific marginal tax rates and leverage measures of individual firms in Spain.
Our hypothesis is that farming systems can reduce turnover rates and leverage the recycling of nutrients in order to promote ecoefficiency in shrimp farming.
